All Forum Posts by: Samuel Babs

I am a developer wondering how to form a JV partnership with a builder on commercial projects. Please advise

Are developers allow to use buyer's deposits towards construction using deposit bonds from an insurance company?

I need to submit a new development proposal to my lenders. Could anyone share a template with me?

@Ivan Barratt thanks for your feedback. I certainly agree with you. Funny enough things have dramatically improved over the last couple days. We now have a solid JV partner on board offering up to 90% of the remaining balance. Happy ending.

My advice to anyone starting up in real estate is, never listen to anyone that tells you its not possible. Anything is possible if you pray for directions and work hard and smart in networking with the right people. 

@Dino Pierce thanks for sharing those insightful points. Very interesting! 

@John holeman I sincerely appreciate your feedback. I definitely agree with some of the key principle points you highlighted but i have to disagree with some of the other points raised. My partner who did similar project had 0 experience in real estate when he did it. Had 0 track record or similar project to reference as his project was the very first in North America. If your points reflect reality, no one would have listened to him or lend him $80MM.  Lenders told him they have never seen a real estate deal with such a huge profit margin. They have loaned him another 80MM to expand the project to another state. 

My point is having a real idea weighs more than money. Ideas are intelectual properties that could make you millions or billions i.e Facebook, Airbnb,  YouTube etc. My partner presold 70% of all units in 6 months before construction, which made it very easy to get the construction loan. 

Lastly,  I didn't say I'm looking for someone to invest 6MM. I said I have potentially raised 6MM.

I received 2 offers last night with hard money lenders, only thing is with higher interest. But I don't mind at this point.

Lol you're right @matthew. Most people don't understand the simple logic in business. If they come to the table with no experience, then they must be wiling to pay a higher price in return. I would say take 60% and I take 40%. As long as we get the deal done, I won't care. I can have 100% of my next project. 

Hi All 

I am kind of getting to the point of giving up. I have worked extremely hard to raise almost $6MM for a commercial project in Southern California. Everyone I have spoken to about this project love the idea. An ideal that is already proven with track record. 

So why is so hard to find one more JV or equity partner for such a lucrative and high profitable project?

Can someone please shed some light and directions on this. I'm literally at a breaking point right now 

I am looking to partner with an experienced property developer on variety of residential and commercial real estate projects. 

I am currently working on a commercial project in Southern California valued at $130MM once completed. I need a partner with property development on board as an equity partner in an advisory role.

Please get back to me ASAP if you would be interested. Thanks

Sam

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Hello All

Thank you so much for your feedback and comments. I will keep all these insightful information and ideas you have provided in mind and take some steps this week. I will also hire an engineer to look into it for me. I guess there is a reason why the land was so dirt cheap at the first place.